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Capital Gains Tax
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Posts: 7,797 Forumite
Was not sure which board to use, but as this is a property issue I thought I’d start here
Mate of mine owns two houses in the UK
One was his own; the other was left to him in his fathers will.
All probate issues have been resolved.
He is renting out “his” house to some students – not sure if he is actually paying any tax (yikes!). His father’s house is occupied by a family member FOC.
He has been living in Fiji (yes I know – lucky git) for the past 16 months & has decided to sell one of his two houses & return to Fiji
Questions:
• What tax will he be liable for?
• He has asked me to sell his house on his behalf – power of attorney and all that – any pitfalls to watch out for?
• Anything else we ought to consider?
Thanks in anticipation
Mate of mine owns two houses in the UK
One was his own; the other was left to him in his fathers will.
All probate issues have been resolved.
He is renting out “his” house to some students – not sure if he is actually paying any tax (yikes!). His father’s house is occupied by a family member FOC.
He has been living in Fiji (yes I know – lucky git) for the past 16 months & has decided to sell one of his two houses & return to Fiji
Questions:
• What tax will he be liable for?
• He has asked me to sell his house on his behalf – power of attorney and all that – any pitfalls to watch out for?
• Anything else we ought to consider?
Thanks in anticipation
0
Comments
-
Any money from the rent comes under income tax, although he can deduct expenses including the mortgage.
As for selling one of the houses - you haven't said whether it is the one he used to live in or not. It makes a big difference.
The one he has never lived in will be subject to capital gains tax for any increase in value between the time he inherited it and the price he sells it for (less capital gains allowance).
However the one he used to live in should be free of all tax if he sells it now. You can find an explanation here.0 -
Ta very much0
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